AT&T beats profit estimates in Q1, sells 4.3 million iPhones

posted by Daniel P. / Apr 24, 2012, 7:23 AM

AT&T just posted another stellar quarter, thanks to the increased data usage coming from both smartphones and wireline data consumption increase. The carrier made about a billion more from data compared to the January-March period of last year.

In total AT&T locked in $31.8 billion of revenue, of which it netted $3.6 billion in profit, or about $0.6 a share, beating Wall Street's consensus of $0.57 a share.

As per the boss Randall Stephenson, AT&T's chairman and chief executive officer:

We continue to capitalize on our terrific momentum in mobile Internet. Smartphone and branded computing device sales continue to set a record pace, mobile data revenues were up nearly 20 percent, and we achieved this growth with expanding margins. These results add confidence in our outlook for the year.

The company sold the record for a first quarter 5.5 million smartphones, and clarified that about 30% of its smartphone customers on contract are using 4G-capable handsets. Tablets and tethering plans also broke the previous record in sales, contributing to the overall rosy picture, and churn rate was the lowest in seven quarters.

AT&T will have a conference call at 10AM Eastern, but out of the 5.5 million smartphones sold, the carrier said 4.3 million were of the Apple variety. Verizon sold a million of them less than the previous quarter, and AT&T's 4.3 million number is 3.3 million short of the Q4 record, so Apple's earnings today might get interesting.

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Posts: 73; Member since: Dec 25, 2011

On CNBC moments ago...Ralph De La Vega ATT President and CEO...when adked about latest and greatest phone... he touts the Lumia. He doesn't even mention the HTC One X or Galaxy Note. (Also holds up an iPhone during the discussion about $400 subsidies ATT pays Apple for the phone).

posted on Apr 24, 2012, 7:44 AM 3

I think all the carriers are starting to realize that leaning on one smartphone isn't smart anymore. When the iPhone first came out and for a few years after, it was the best thing on the market. AT&T added a ton of customers because of it. But times have changed and competition has risen dramatically. Leaning on the iPhone isn't smart anymore...but it's the same about any phone. The Lumia is the flagship phone for now, but AT&T will eventually move to a different phone...and that's smart. Phones that are part of a series or line only come out once a year. You don't want people to only be excited once.

Posts: 7305; Member since: Dec 05, 2009

posted on Apr 24, 2012, 9:52 AM 1

Posts: 3295; Member since: May 17, 2009

I just don't get why so many customers are still going to AT&T for their iPhones, when their is a VZW version now. I'm sure most AT&T iPhone users have no signal issues, talking and browsing at the same time and the one and a half seconds faster data speeds with AT&T. But their are customers who curse AT&T, their signal strength or lack of, and their prices...yet when presented with a VZW iPhone 4S that would correct most of their issue, they choose to go back to AT&T! I just don't get it!

posted on Apr 24, 2012, 10:19 AM 1

Posts: 5506; Member since: Oct 08, 2009

If you've been with a company for years the move isn't so easy. They may have family on AT&T, lines can still be in contract, some people don't like change.
Most people will stick with a company unless it gets really bad.

posted on Apr 24, 2012, 10:22 AM 1

Posts: 7305; Member since: Dec 05, 2009

Whoa whoa whoa!
Take what you just said, throw "operating system" and "Apple" in for AT& T and carrier, and you'll understand a large part of why 80 percent of AT& T's smartphones sold were iPhones.
Can you do that, Taco? Are you capable of extending logical thinking to your favorite company?

posted on Apr 24, 2012, 10:29 AM 4

Posts: 7305; Member since: Dec 05, 2009

Most of the people who moved to the iPhone did so from other carriers or made the move from Blackberry. This is why in overall US marketshare Android barely budged, while Apple climbed and Blackberry sank even more.

Posts: 7305; Member since: Dec 05, 2009

posted on Apr 24, 2012, 10:46 AM 1

Posts: 3295; Member since: May 17, 2009

True, I can understand NOT wanting to give up mobile to mobile minutes and texting with friends and family. But with apps like Viber and Whatsapp on Android and iOS, the decision to jump ship when your service isn't good should be a no brainier, right? But I know what youre right, change is hard...even with something as simple as switching carriers.

Posts: 340; Member since: Jan 08, 2011

posted on Apr 24, 2012, 7:48 PM 1

Posts: 7305; Member since: Dec 05, 2009

Well, in some markets AT&T actually works quite well. I've rocked it on two different devices for almost nine months and it's worked really well. I really have no complaints. Granted, I also haven't had an iPhone, which customers will still complain about dropped calls with, but hey, to each their own.

posted on Apr 26, 2012, 10:59 AM 1

Posts: 3295; Member since: May 17, 2009

True, it is more expensive. But you have to be smart about your plan. With friends and family calling, messaging apps, and multiple lines make VZW a much better value than most may think. I have four lines, two smartphones and two feature phones, but I pay about 20 bucks more than what I paid Sprint for two Evos with unlimited everything. I have unlimited data, 1400 mins, 10 Frineds and Familiy contacts, and two 250 text plans. People love Sprint's unlimited everything because it allows them to not worry about their usage, but with just a little investigation some customers may find VZW is an even better value.

posted on Apr 26, 2012, 12:16 PM 0

Posts: 6330; Member since: Mar 31, 2010

Taco, Americans are not exactly the brightest people on Earth - most of us are riddled with progandic news, societal messages day in and day out that basically tell us how we should think and feel. It takes a person to stand up for what they truly believe in, rather than just follow the crowd....with that being said....there are more Android phones out there on the world marketplace - because ISOLATIONISM is so yesterday...lol.
Again, I like having a choice with my phone make and model as well as choice of app stores....do APPLE users?

posted on Apr 26, 2012, 11:02 AM 0

Posts: 6330; Member since: Mar 31, 2010

AT&T has been doing really well with its network over the last few months...seems VZW has been taking more hits in that department - especially with their 4G issues. Either company has worked out for me, and I pay for it, too....LOL

posted on Apr 24, 2012, 2:14 PM 0

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